diff --git a/AppKit/CPKeyValueBinding.j b/AppKit/CPKeyValueBinding.j
index e8e7096f6..772e9a4e7 100644
--- a/AppKit/CPKeyValueBinding.j
+++ b/AppKit/CPKeyValueBinding.j
@@ -177,6 +177,17 @@ var CPBindingOperationAnd = 0,
         valueTransformer,
         placeholder;
 
+    var valueTransformerName = [options objectForKey:CPValueTransformerNameBindingOption],
+        valueTransformer;
+
+    if (valueTransformerName)
+        valueTransformer = [CPValueTransformer valueTransformerForName:valueTransformerName];
+    else
+        valueTransformer = [options objectForKey:CPValueTransformerBindingOption];
+
+    if (valueTransformer)
+        aValue = [valueTransformer transformedValue:aValue];
+
     switch (aValue)
     {
         case CPMultipleValuesMarker:    return [options objectForKey:CPMultipleValuesPlaceholderBindingOption] || @"Multiple Values";
@@ -189,20 +200,9 @@ var CPBindingOperationAnd = 0,
                                         return [options objectForKey:CPNotApplicablePlaceholderBindingOption] || @"Not Applicable";
 
         case nil:
-        case undefined:                 return [options objectForKey:CPNullPlaceholderBindingOption] || @"";
+        case undefined:                 return [options objectForKey:CPNullPlaceholderBindingOption] || nil;
     }
 
-    var valueTransformerName = [options objectForKey:CPValueTransformerNameBindingOption],
-        valueTransformer;
-
-    if (valueTransformerName)
-        valueTransformer = [CPValueTransformer valueTransformerForName:valueTransformerName];
-    else
-        valueTransformer = [options objectForKey:CPValueTransformerBindingOption];
-
-    if (valueTransformer)
-        aValue = [valueTransformer transformedValue:aValue];
-
     return aValue;
 }
 
diff --git a/Tests/AppKit/CPKeyValueBindingTest.j b/Tests/AppKit/CPKeyValueBindingTest.j
index be32de478..c57186eb0 100644
--- a/Tests/AppKit/CPKeyValueBindingTest.j
+++ b/Tests/AppKit/CPKeyValueBindingTest.j
@@ -41,7 +41,79 @@
 
     [self assertTrue:[self valueForKey:@"FOO"]==="banana" message:"Bound value should have been updated to banana, was "+FOO];
 }
-/*
+
+- (void)testBindOptions
+{
+
+    var bindTesterA = [BindingTestWithBool new],
+        bindTesterB = [BindingTestWithBool new];
+
+    [bindTesterB bind:@"stringValue" toObject:bindTesterA withKeyPath:@"stringValue" options:[CPDictionary dictionary]];
+    [self assert:nil equals:[bindTesterA stringValue] message:"initial A value unchanged"];
+    [self assert:nil equals:[bindTesterB stringValue] message:"initial B value unchanged"];
+
+    [bindTesterA setStringValue:@"My string"];
+    [self assert:@"My string" equals:[bindTesterA stringValue] message:"A value set"];
+    [self assert:@"My string" equals:[bindTesterB stringValue] message:"B value updated"];
+
+    [bindTesterA setStringValue:nil];
+    [self assert:nil equals:[bindTesterA stringValue] message:"A value reset"];
+    [self assert:nil equals:[bindTesterB stringValue] message:"B value updated with nil"];
+
+    [bindTesterA unbind:@"stringValue"];
+
+    [bindTesterB bind:@"boolValue" toObject:bindTesterA withKeyPath:@"stringValue" options:[CPDictionary dictionaryWithObject:CPIsNotNilTransformerName forKey:CPValueTransformerNameBindingOption]];
+    [bindTesterB setBoolValue:YES];
+    [bindTesterA setStringValue:nil];
+    [self assert:nil equals:[bindTesterA stringValue] message:"A value reset"];
+    [self assert:NO equals:[bindTesterB boolValue] message:"B value updated"];
+
+    [bindTesterB setBoolValue:NO];
+    [bindTesterA setStringValue:@"My string"];
+    [self assert:@"My string" equals:[bindTesterA stringValue] message:"A value updated"];
+    [self assert:YES equals:[bindTesterB boolValue] message:"B value updated"];
+
+    [bindTesterB setBoolValue:NO];
+    [bindTesterA setStringValue:@""];
+    [self assert:@"" equals:[bindTesterA stringValue] message:"A value updated"];
+    [self assert:YES equals:[bindTesterB boolValue] message:"B value updated"];
+
+    [bindTesterA unbind:@"boolValue"];
+
+    [bindTesterB bind:@"boolValue" toObject:bindTesterA withKeyPath:@"stringValue" options:[CPDictionary dictionaryWithObject:CPIsNilTransformerName forKey:CPValueTransformerNameBindingOption]];
+    [bindTesterB setBoolValue:NO];
+    [bindTesterA setStringValue:nil];
+    [self assert:nil equals:[bindTesterA stringValue] message:"A value reset"];
+    [self assert:YES equals:[bindTesterB boolValue] message:"B value updated"];
+
+    [bindTesterB setBoolValue:YES];
+    [bindTesterA setStringValue:@"My string"];
+    [self assert:@"My string" equals:[bindTesterA stringValue] message:"A value updated"];
+    [self assert:NO equals:[bindTesterB boolValue] message:"B value updated"];
+
+    [bindTesterB setBoolValue:YES];
+    [bindTesterA setStringValue:@""];
+    [self assert:@"" equals:[bindTesterA stringValue] message:"A value updated"];
+    [self assert:NO equals:[bindTesterB boolValue] message:"B value updated"];
+
+    [bindTesterA unbind:@"boolValue"];
+
+
+    [bindTesterB bind:@"stringValue" toObject:bindTesterA withKeyPath:@"stringValue" options:[CPDictionary dictionaryWithObject:@"placeholder" forKey:CPNullPlaceholderBindingOption]];
+
+    [bindTesterA setStringValue:@""];
+    [self assert:@"" equals:[bindTesterA stringValue] message:"A value set (placeholder)"];
+    [self assert:@"" equals:[bindTesterB stringValue] message:"B value updated (placeholder)"];
+
+    [bindTesterA setStringValue:@"My string"];
+    [self assert:@"My string" equals:[bindTesterA stringValue] message:"A value set (placeholder)"];
+    [self assert:@"My string" equals:[bindTesterB stringValue] message:"B value updated (placeholder)"];
+
+    [bindTesterA setStringValue:nil];
+    [self assert:nil equals:[bindTesterA stringValue] message:"A value reset (placeholder)"];
+    [self assert:@"placeholder" equals:[bindTesterB stringValue] message:"B value updated (placeholder)"];
+}
+
 - (void)testControl
 {
     FOO = "bingo";
@@ -58,7 +130,9 @@
     //[control addObserver:self forKeyPath:CPValueBinding options:nil context:"testControl"];
 
     [control bind:CPValueBinding toObject:self withKeyPath:@"FOO" options:nil];
-    [self bind:@"FOO" toObject:control withKeyPath:CPValueBinding options:nil];
+    // Should this even work? It's a two way binding. Anyhow, it currently crashes
+    // objj disrupting the other unit tests, so commenting it out for now.
+    //[self bind:@"FOO" toObject:control withKeyPath:CPValueBinding options:nil];
 
     [control setStringValue:@"banana"];
     [control setStringValue:@"grapefruit"];
@@ -70,7 +144,7 @@
     [control setStringValue:@"pina colada"];
 
     [self assertTrue: FOO == [control stringValue] message: "should be equal, were: "+FOO+"and: "+[control stringValue]];
-}*/
+}
 
 - (void)testTableColumn
 {
@@ -140,6 +214,14 @@
 
 @end
 
+@implementation BindingTestWithBool : CPObject
+{
+    CPString    stringValue @accessors;
+    BOOL        boolValue @accessors;
+}
+
+@end
+
 @implementation DataViewTester : CPObject
 {
     id lastValue;